BILL NUMBER: SB 1223	CHAPTERED  07/07/00

	CHAPTER   102
	FILED WITH SECRETARY OF STATE   JULY 7, 2000
	APPROVED BY GOVERNOR   JULY 7, 2000
	PASSED THE SENATE   JULY 6, 2000
	PASSED THE ASSEMBLY   JULY 6, 2000
	CONFERENCE REPORT NO.   1
	PROPOSED IN CONFERENCE   JUNE 29, 2000
	AMENDED IN ASSEMBLY   JULY 13, 1999
	AMENDED IN ASSEMBLY   JUNE 15, 1999

INTRODUCED BY   Senator Burton

                        FEBRUARY 26, 1999

   An act to amend Sections 82016, 82053, 84204, and 89510 of, to add
Sections 84305.6, 84511, 85314, 85315, 85316, 85317, 85318, and
85319 to, to add Article 2.5 (commencing with Section 85202) to
Chapter 5 of, to repeal Sections 84201 and 85313, and Article 2
(commencing with Section 85202) of Chapter 5 of, to repeal and add
Sections 83116, 83116.5, 83124, 85301, 85302, 85303, 85304, 85305,
85306, 85307, 85308, 85309, 85310, 85311, 85312, 89519, 91000, 91004,
91005.5, and 91006 of, and to repeal and add Article 1 (commencing
with Section 85100), Article 4 (commencing with Section 85400),
Article 5 (commencing with Section 85500), Article 6 (commencing with
Section 85600), and Article 7 (commencing with Section 85700) of
Chapter 5 of Title 9 of, the Government Code, relating to the
Political Reform Act of 1974 and calling a special election to be
consolidated with the general election of November 7, 2000, to take
effect immediately, as an act calling an election.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1223, Burton.   Campaign contributions and expenditures.
   The Political Reform Act of 1974 was amended by the adoption of
Proposition 208, an initiative statute approved by the voters at the
November 5, 1996, statewide general election.  The amendments made by
Proposition 208 to the Political Reform Act of 1974, among other
things, established certain limits on the amount of campaign
contributions that an individual or group can make to a candidate for
state or local elective office, on the amount of loans a candidate
may make to his or her campaign, and on voluntary campaign spending.

   On January 6, 1998, a decision of a federal district court
preliminarily enjoined the Fair Political Practices Commission from
enforcing the amendments made by Proposition 208 to the Political
Reform Act of 1974.  On January 5, 1999, a federal appellate court
affirmed the preliminary injunction and returned the matter to the
district court to consider in a new trial the constitutionality of
all aspects of the Proposition 208 amendments.  That new trial is
scheduled to begin on July 11, 2000.
   This bill would, among other things, repeal certain amendments
made by Proposition 208 and would reenact provisions that impose
similar, but increased dollar amount limits on campaign contributions
for elective state office, candidate loans, and voluntary campaign
spending.  This bill would also add provisions to the act that
require certain disclosures in slate mailers, in paid political
advertisements, and in certain issue advocacy communications;
authorize intracandidate transfers of campaign funds and restrict
intercandidate contributions; require the aggregation of certain
contributions made by affiliated entities; expand online or
electronic filing requirements with respect to the receipt of certain
contributions and the making of certain independent expenditures;
and prescribe the authorized use of surplus campaign funds.  These
new provisions, as to candidates for statewide elective office, would
become operative on or after November 6, 2002.  This bill would also
make certain technical conforming changes.
   Existing law makes a violation of the act subject to
administrative, civil, and criminal penalties.
   The Political Reform Act of 1974, an initiative measure, provides
that the act may be amended by a statute that becomes effective upon
approval of the voters.
   This measure would call a special statewide election to be
consolidated with the statewide general election scheduled for
November 7, 2000.  It would provide for the submission to the voters
of the provisions of this bill amending the Political Reform Act of
1974, as summarized above, at that election.
   This bill would declare that it is to take effect immediately as
an act calling an election.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The people find and declare all of the following:
   (1) Monetary contributions to political campaigns are a legitimate
form of participation in the American political process, but large
contributions may corrupt or appear to corrupt candidates for
elective office.
   (2) Increasing costs of political campaigns have forced many
candidates to devote a substantial portion of their time to raising
campaign contributions and less time to public policy.
   (3) Political parties play an important role in the American
political process and help insulate candidates from the potential
corrupting influence of large contributions.
   (b) The people enact the Campaign Contribution and Voluntary
Expenditure Limits Without Taxpayer Financing Amendments to the
Political Reform Act of 1974 to accomplish all of the following
purposes:
   (1) To ensure that individuals and interest groups in our society
have a fair and equitable opportunity to participate in the elective
and governmental processes.
   (2) To minimize the potentially corrupting influence and
appearance of corruption caused by large contributions by providing
reasonable contribution and voluntary expenditure limits.
   (3) To reduce the influence of large contributors with an interest
in matters before state government by prohibiting lobbyist
contributions.
   (4) To provide voluntary expenditure limits so that candidates and
officeholders can spend a lesser proportion of their time on
fundraising and a greater proportion of their time conducting public
policy.
   (5) To increase public information regarding campaign
contributions and expenditures.
   (6) To enact increased penalties to deter persons from violating
the Political Reform Act of 1974.
   (7) To strengthen the role of political parties in financing
political campaigns by means of reasonable limits on contributions to
political party committees and by limiting restrictions on
contributions to, and expenditures on behalf of, party candidates, to
a full, complete, and timely disclosure to the public.
  SEC. 2.  Section 82016 of the Government Code is amended to read:
   82016.  (a) "Controlled committee" means a committee that is
controlled directly or indirectly by a candidate or state measure
proponent or that acts jointly with a candidate, controlled
committee, or state measure proponent in connection with the making
of expenditures.  A candidate or state measure proponent controls a
committee if he or she, his or her agent, or any other committee he
or she controls has a significant influence on the actions or
decisions of the committee.
   (b) Notwithstanding subdivision (a), a political party committee,
as defined in Section 85205, is not a controlled committee.
  SEC. 3.  Section 82053 of the Government Code is amended to read:
   82053.  "Statewide elective office" means the office of Governor,
Lieutenant Governor, Attorney General, Insurance Commissioner,
Controller, Secretary of State, Treasurer, Superintendent of Public
Instruction and member of the State Board of Equalization.
  SEC. 4.  Section 83116 of the Government Code, as added by
Proposition 9 at the June 4, 1974, statewide primary election, is
repealed.
  SEC. 5.  Section 83116 of the Government Code, as amended by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 6.  Section 83116 is added to the Government Code, to read:
   83116.  When the commission determines there is probable cause for
believing this title has been violated, it may hold a hearing to
determine if a violation has occurred.  Notice shall be given and the
hearing conducted in accordance with the Administrative Procedure
Act (Chapter 5 (commencing with Section 11500), Part 1, Division 3,
Title 2, Government Code).  The commission shall have all the powers
granted by that chapter.  When the commission determines on the basis
of the hearing that a violation has occurred, it shall issue an
order that may require the violator to do all or any of the
following:
   (a) Cease and desist violation of this title.
   (b) File any reports, statements, or other documents or
information required by this title.
   (c) Pay a monetary penalty of up to five thousand dollars ($5,000)
per violation to the General Fund of the state.  When the Commission
determines that no violation has occurred, it shall publish a
declaration so stating.
  SEC. 7.  Section 83116.5 of the Government Code, as added by
Chapter 670 of the Statutes of 1984, is repealed.
  SEC. 8.  Section 83116.5 of the Government Code, as amended by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 9.  Section 83116.5 is added to the Government Code, to read:

   83116.5.  Any person who violates any provision of this title, who
purposely or negligently causes any other person to violate any
provision of this title, or who aids and abets any other person in
the violation of any provision of this title, shall be liable under
the provisions of this chapter.  However, this section shall apply
only to persons who have filing or reporting obligations under this
title, or who are compensated for services involving the planning,
organizing, or directing any activity regulated or required by this
title, and a violation of this section shall not constitute an
additional violation under Chapter 11 (commencing with Section
91000).
  SEC. 10.  Section 83124 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 11.  Section 83124 is added to the Government Code, to read:
   83124.  The commission shall adjust the contribution limitations
and voluntary expenditure limitations provisions in Sections 85301,
85302, 85303, and 85400 in January of every odd-numbered year to
reflect any increase or decrease in the Consumer Price Index.  Those
adjustments shall be rounded to the nearest one hundred dollars
($100) for limitations on contributions and one thousand dollars
($1,000) for limitations on expenditures.
  SEC. 12.  Section 84201 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 13.  Section 84204 of the Government Code is amended to read:

   84204.  (a) A candidate or committee that makes a late independent
expenditure, as defined in Section 82036.5, shall report the late
independent expenditure by facsimile transmission, telegram,
guaranteed overnight mail through the United States Postal Service or
personal delivery within 24 hours of the time it is made.  A late
independent expenditure shall be reported on subsequent campaign
statements without regard to reports filed pursuant to this section.

   (b) A candidate or committee that makes a late independent
expenditure shall report its full name and street address, as well as
the name, office, and district of the candidate if the report is
related to a candidate, or if the report is related to a measure, the
number or letter of the measure, the jurisdiction in which the
measure is to be voted upon, and the amount and the date, as well as
a description of goods or services for which the late independent
expenditure was made.  In addition to the information required by
this subdivision, a committee that makes a late independent
expenditure shall include with its late independent expenditure
report the information required by paragraphs (1) to (5), inclusive,
of subdivision (f) of Section 84211, covering the period from the day
after the closing date of the last campaign report filed to the date
of the late independent expenditure, or if the committee has not
previously filed a campaign statement, covering the period from the
previous January 1 to the date of the late independent expenditure.
No information required by paragraphs (1) to (5), inclusive, of
subdivision (f) of Section 84211, that is required to be reported
with a late independent expenditure report by this subdivision, is
required to be reported on more than one late independent expenditure
report.
   (c) A candidate or committee that makes a late independent
expenditure shall file a late independent expenditure report in the
places where it would be required to file campaign statements under
this article as if it were formed or existing primarily to support or
oppose the candidate or measure for or against which it is making
the late independent expenditure.
   (d) A report filed pursuant to this section shall be in addition
to any other campaign statement required to be filed by this article.

  SEC. 14.  Section 84305.6 is added to the Government Code, to read:

   84305.6.  In addition to the requirements of Section 84305.5, a
slate mailer organization or committee primarily formed to support or
oppose one or more ballot measures may not send a slate mailer
unless any recommendation in the slate mailer to support or oppose a
ballot measure or to support a candidate that is different from the
official recommendation to support or oppose by the political party
that the mailer appears by representation or indicia to represent is
accompanied, immediately below the ballot measure or candidate
recommendation in the slate mailer, in no less than nine-point roman
boldface type in a color or print that contrasts with the background
so as to be easily legible, the following notice:
"THIS IS NOT THE OFFICIAL POSITION OF THE (political party that the
mailer appears by representation or indicia to represent) PARTY."

  SEC. 15.  Section 84511 is added to the Government Code, to read:
   84511.  Any individual who appears in an advertisement to support
or oppose the qualification, passage, or defeat of a ballot measure
and who has been paid or promised payment of five thousand dollars
($5,000) or more for that appearance shall disclose that payment or
promised payment in a manner prescribed by the commission.  The
advertisement shall include the statement "(spokesperson's name) is
being paid by this campaign or its donors" in highly visible roman
font shown continuously if the advertisement consists of printed or
televised material, or spoken in a clearly audible format if the
advertisement is a radio broadcast or telephone message.
  SEC. 16.  Article 1 (commencing with Section 85100) of Chapter 5 of
Title 9 of the Government Code, as added by Proposition 73 at the
June 7, 1988, statewide primary election, is repealed.
  SEC. 17.  Article 1 (commencing with Section 85100) of Chapter 5 of
Title 9 of the Government Code, as added by Proposition 208 at the
November 5, 1996, statewide general election, is repealed.
  SEC. 18.  Article 1 (commencing with Section 85100) is added to
Chapter 5 of Title 9 of the Government Code, to read:

      Article 1.  Title of Chapter

   85100.  This chapter shall be known as the "Campaign Contribution
and Voluntary Expenditure Limits Without Taxpayer Financing
Amendments to the Political Reform Act of 1974."
  SEC. 19.  Article 2 (commencing with Section 85202) of Chapter 5 of
Title 9 of the Government Code, as added by Proposition 208 at the
November 5, 1996, statewide general election, is repealed.
  SEC. 20.  Article 2.5 (commencing with Section 85202) is added to
Chapter 5 of Title 9 of the Government Code, to read:

      Article 2.5.  Applicability of the Political Reform Act of 1974

   85202.  Unless specifically superseded by the act that adds this
section, the definitions and provisions of this title shall govern
the interpretation of this chapter.
   85203.  "Small contributor committee" means any committee that
meets all of the following criteria:
   (a) The committee has been in existence for at least six months.
   (b) The committee receives contributions from 100 or more persons.

   (c) No one person has contributed to the committee more than two
hundred dollars ($200) per calendar year.
   (d) The committee makes contributions to five or more candidates.

   85204.  "Election cycle" for purposes of Sections 85309 and 85500,
means the period of time commencing 90 days prior to an election and
ending on the date of the election.
   85204.5.  With respect to special elections, the following terms
have the following meanings:
   (a) "Special election cycle" means the day on which the office
becomes vacant until the day of the special election.
   (b) "Special runoff election cycle" means the day after the
special election until the day of the special runoff election.
   85205.  "Political party committee" means the state central
committee or county central committee of an organization that meets
the requirements for recognition as a political party pursuant to
Section 5100 of the Elections Code.
   85206.  "Public moneys" has the same meaning as defined in Section
426 of the Penal Code.
  SEC. 21.  Section 85301 of the Government Code, as added by
Proposition 73 at the June 7, 1988, statewide primary election, is
repealed.
  SEC. 22.  Section 85301 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 23.  Section 85301 is added to the Government Code, to read:
   85301.  (a) A person, other than a small contributor committee or
political party committee, may not make to any candidate for elective
state office other than a candidate for statewide elective office,
and a candidate for elective state office other than a candidate for
statewide elective office may not accept from a person, any
contribution totaling more than three thousand dollars ($3,000) per
election.
   (b) Except to a candidate for Governor, a person, other than a
small contributor committee or political party committee, may not
make to any candidate for statewide elective office, and except a
candidate for Governor, a candidate for statewide elective office may
not accept from a person other than a small contributor committee or
a political party committee, any contribution totaling more than
five thousand dollars ($5,000) per election.
   (c) A person, other than a small contributor committee or
political party committee, may not make to any candidate for
Governor, and a candidate for governor may not accept from any person
other than a small contributor committee or political party
committee, any contribution totaling more than twenty thousand
dollars ($20,000) per election.
   (d) The provisions of this section do not apply to a candidate's
contributions of his or her personal funds to his or her own
campaign.
  SEC. 24.  Section 85302 of the Government Code, as added by
Proposition 73 at the June 7, 1988, statewide primary election, is
repealed.
  SEC. 25.  Section 85302 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 26.  Section 85302 is added to the Government Code, to read:
   85302.  (a) A small contributor committee may not make to any
candidate for elective state office other than a candidate for
statewide elective office, and a candidate for elective state office,
other than a candidate for statewide elective office may not accept
from a small contributor committee, any contribution totaling more
than six thousand dollars ($6,000) per election.
   (b) Except to a candidate for Governor, a small contributor
committee may not make to any candidate for statewide elective office
and except for a candidate for Governor, a candidate for statewide
elective office may not accept from a small contributor committee,
any contribution totaling more than ten thousand dollars ($10,000)
per election.
   (c) A small contributor committee may not make to any candidate
for Governor, and a candidate for governor may not accept from a
small contributor committee, any contribution totaling more than
twenty thousand dollars ($20,000) per election.
  SEC. 27.  Section 85303 of the Government Code, as added by
Proposition 73 at the June 7, 1988, statewide primary election, is
repealed.
  SEC. 28.  Section 85303 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 29.  Section 85303 is added to the Government Code, to read:
   85303.  (a) A person may not make to any committee, other than a
political party committee, and a committee other than a political
party committee may not accept, any contribution totaling more than
five thousand dollars ($5,000) per calendar year for the purpose of
making contributions to candidates for elective state office.
   (b) A person may not make to any political party committee, and a
political party committee may not accept, any contribution totaling
more than twenty-five thousand dollars ($25,000) per calendar year
for the purpose of making contributions for the support or defeat of
candidates for elective state office.
   (c) Except as provided in Section 85310, nothing in this chapter
shall limit a person's contributions to a committee or political
party committee provided the contributions are used for purposes
other than making contributions to candidates for elective state
office.
   (d) Nothing in this chapter limits a candidate for elected state
office from transferring contributions received by the candidate in
excess of any amount necessary to defray the candidate's expenses for
election related activities or holding office to a political party
committee, provided those transferred contributions are used for
purposes consistent with paragraph (4) of subdivision (b) of Section
89519.
  SEC. 30.  Section 85304 of the Government Code, as added by
Proposition 73 at the June 7, 1988, statewide primary election, is
repealed.
  SEC. 31.  Section 85304 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 32.  Section 85304 is added to the Government Code, to read:
   85304.  (a) A candidate for elective state office or an elected
state officer may establish a separate account to defray attorney's
fees and other related legal costs incurred for the candidate's or
officer's legal defense if the candidate or officer is subject to one
or more civil or criminal proceedings or administrative proceedings
arising directly out of the conduct of an election campaign, the
electoral process, or the performance of the officer's governmental
activities and duties.  These funds may be used only to defray those
attorney fees and other related legal costs.
   (b) A candidate may receive contributions to this account that are
not subject to the contribution limits set forth in this article.
However, all contributions shall be reported in a manner prescribed
by the commission.
   (c) Once the legal dispute is resolved, the candidate shall
dispose of any funds remaining after all expenses associated with the
dispute are discharged for one or more of the purposes set forth in
paragraphs (1) to (5), inclusive, of subdivision (b) of Section
89519.
  SEC. 33.  Section 85305 of the Government Code, as added by
Proposition 73 at the June 7, 1988, statewide primary election, is
repealed.
  SEC. 34.  Section 85305 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 35.  Section 85305 is added to the Government Code, to read:
   85305.  A candidate for elective state office or committee
controlled by that candidate may not make any contribution to any
other candidate for elective state office in excess of the limits set
forth in subdivision (a) of Section 85301.
  SEC. 36.  Section 85306 of the Government Code, as added by
Proposition 73 at the June 7, 1988, statewide primary election, is
repealed.
  SEC. 37.  Section 85306 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 38.  Section 85306 is added to the Government Code, to read:
   85306.  (a) A candidate may transfer campaign funds from one
controlled committee to a controlled committee for elective state
office of the same candidate.  Contributions transferred shall be
attributed to specific contributors using a "last in, first out" or
"first in, first out" accounting method, and these attributed
contributions when aggregated with all other contributions from the
same contributor may not exceed the limits set forth in Section 85301
or 85302.
   (b) Notwithstanding subdivision (a), a candidate for elective
state office, other than a candidate for statewide elective office
who possesses campaign funds on January 1, 2001, may use those funds
to seek elective office without attributing the funds to specific
contributors.
   (c) Notwithstanding subdivision (a), a candidate for statewide
elective office who possesses campaign funds on November 6, 2002, may
use those funds to seek elective office without attributing the
funds to specific contributors.
  SEC. 39.  Section 85307 of the Government Code, as added by
Proposition 73 at the June 7, 1988, statewide primary election, is
repealed.
  SEC. 40.  Section 85307 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 41.  Section 85307 is added to the Government Code, to read:
   85307.  (a) The provisions of this article regarding loans apply
to extensions of credit, but do not apply to loans made to a
candidate by a commercial lending institution in the lender's regular
course of business on terms available to members of the general
public for which the candidate is personally liable.
   (b) A candidate for elective state office may not personally loan
to his or her campaign an amount, the outstanding balance of which
exceeds one hundred thousand dollars ($100,000).  A candidate may not
charge interest on any loan he or she made to his or her campaign.
  SEC. 42.  Section 85308 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 43.  Section 85308 is added to the Government Code, to read:
   85308.  (a) Contributions made by a husband and wife may not be
aggregated.
   (b) A contribution made by a child under 18 years of age is
presumed to be a contribution from the parent or guardian of the
child.
  SEC. 44.  Section 85309 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 45.  Section 85309 is added to the Government Code, to read:
   85309.  (a) In addition to any other report required by this
title, candidates for elective state office who are required to file
reports pursuant to Section 84605 shall file online or electronically
with the Secretary of State a report disclosing receipt of a
contribution of one thousand dollars ($1,000) or more received during
an election cycle.  Those reports shall disclose the same
information required by subdivision (a) of Section 84203 and shall be
filed within 24 hours of receipt of the contribution.
   (b) In addition to any other reports required by this title, any
committee primarily formed to support one or more state ballot
measures that is required to file reports pursuant to Section 84605
shall file online or electronically with the Secretary of State a
report disclosing receipt of a contribution of one thousand dollars
($1,000) or more received during an election cycle.  Those reports
shall disclose the same information required by subdivision (a) of
Section 84203 and shall be filed within 24 hours of receipt of the
contribution.
  SEC. 46.  Section 85310 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 47.  Section 85310 is added to the Government Code, to read:
   85310.  (a) Any person who makes a payment or a promise of payment
totaling fifty thousand dollars ($50,000) or more for a
communication that clearly identifies a candidate for elective state
office, but does not expressly advocate the election or defeat of the
candidate, and that is disseminated, broadcast, or otherwise
published within 45 days of an election, shall file online or
electronically with the Secretary of State a report disclosing the
name of the person, address, occupation, and employer, and amount of
the payment.  The report shall be filed within 48 hours of making the
payment or the promise to make the payment.
   (b) (1) Except as provided in paragraph (2), if any person has
received a payment or a promise of a payment from other persons
totaling five thousand dollars ($5,000) or more for the purpose of
making a communication described in subdivision (a), the person
receiving the payments shall disclose on the report the name,
address, occupation and employer, and date and amount received from
the person.
   (2) A person who receives or is promised a payment that is
otherwise reportable under paragraph (1) is not required to report
the payment if the person is in the business of providing goods or
services and receives or is promised the payment for the purpose of
providing those goods or services.
   (c) Any payment received by a person who makes a communication
described in subdivision (a) is subject to the limits specified in
subdivision (b) of Section 85303 if the communication is made at the
behest of the clearly identified candidate.
  SEC. 48.  Section 85311 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 49.  Section 85311 is added to the Government Code, to read:
   85311.  (a) For purposes of this chapter the following terms have
the following meanings:
   (1) "Entity" means any person, other than an individual.
   (2) "Majority-owned" means a direct or indirect ownership of more
than 50 percent.
   (b) The contributions of an entity whose contributions are
directed and controlled by any individual shall be aggregated with
contributions made by that individual and any other entity whose
contributions are directed and controlled by the same individual.
   (c) If two or more entities make contributions that are directed
and controlled by a majority of the same persons, the contributions
of those entities shall be aggregated.
   (d) Contributions made by entities that are majority-owned by any
person shall be aggregated with the contributions of the majority
owner and all other entities majority-owned by that person, unless
those entities act independently in their decisions to make
contributions.
  SEC. 50.  Section 85312 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
                                  SEC. 51.  Section 85312 is added to
the Government Code, to read:
   85312.  For purpose of this title, payments for communications for
purpose of this title to members, employees, shareholders, or
families of members, employees, or shareholders of an organization
for the purpose of supporting or opposing a candidate or a ballot
measure are not contributions or independent expenditures, provided
those payments are not made for general public advertising such as
broadcasting, billboards, and newspaper advertisements.
  SEC. 52.  Section 85313 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 53.  Section 85314 is added to the Government Code, to read:
   85314.  The contribution limits of this chapter apply to special
elections and apply to special runoff elections. A special election
and a special runoff election are separate elections for purposes of
the contribution and voluntary expenditure limits set forth in this
chapter.
  SEC. 54.  Section 85315 is added to the Government Code, to read:
   85315.  (a) Notwithstanding any other provision of this chapter,
an elected state officer may establish a committee to oppose the
qualification of a recall measure, and the recall election.  This
committee may be established when the elected state officer receives
a notice of intent to recall pursuant to Section 11021 of the
Elections Code. An elected state officer may accept campaign
contributions to oppose the qualification of a recall measure, and if
qualification is successful, the recall election, without regard to
the campaign contributions limits set forth in this chapter.  The
voluntary expenditure limits do not apply to expenditures made to
oppose the qualification of a recall measure or to oppose the recall
election.
   (b) After the failure of a recall petition or after the recall
election, the committee formed by the elected state officer shall
wind down its activities and dissolve.  Any remaining funds shall be
treated as surplus funds and shall be expended within 30 days after
the failure of the recall petition or after the recall election for a
purpose specified in subdivision (b) of Section 89519.
  SEC. 55.  Section 85316 is added to the Government Code, to read:
   85316.  A contribution for an election may be accepted by a
candidate for elective state office after the date of the election
only to the extent that the contribution does not exceed net debts
outstanding from the election, and the contribution does not
otherwise exceed the applicable contribution limit for that election.

  SEC. 56.  Section 85317 is added to the Government Code, to read:
   85317.  Notwithstanding subdivision (a) of Section 85306, a
candidate for state elective office may carry over contributions
raised in connection with one election for elective state office to
pay campaign expenditures incurred in connection with a subsequent
election for the same elective state office.
  SEC. 57.  Section 85318 is added to the Government Code, to read:
   85318.  A candidate for state elective office may raise
contributions for a general election prior to the primary election
for the same elective state office if the candidate set aside these
contributions and uses these contributions for the general election.
If the candidate for state elective office is defeated in the
primary election or otherwise withdraws from the general election,
the general election funds shall be refunded to the contributors on a
pro rata basis less any expenses associated with the raising and
administration of general election contributions.
  SEC. 58.  Section 85319 is added to the Government Code, to read:
   85319.  A candidate for state elective office may return all or
part of any contribution to the donor who made the contribution at
any time, whether or not other contributions are returned.
  SEC. 59.  Article 4 (commencing with Section 85400) of Chapter 5 of
Title 9 of the Government Code, as added by Proposition 208 at the
November 5, 1996, statewide general election, is repealed.
  SEC. 60.  Article 4 (commencing with Section 85400) is added to
Chapter 5 of Title 9 of the Government Code, to read:

      Article 4.  Voluntary Expenditure Ceilings

   85400.  (a) A candidate for elective state office, other than the
Board of Administration of the Public Employees' Retirement System,
who voluntarily accepts expenditure limits may not make campaign
expenditures in excess of the following:
   (1) For an Assembly candidate, four hundred thousand dollars
($400,000) in the primary or special primary election and seven
hundred thousand dollars ($700,000) in the general, special, or
special runoff election.
   (2) For a Senate candidate, six hundred thousand dollars
($600,000) in the primary or special primary election and nine
hundred thousand dollars ($900,000) in the general, special, or
special runoff election.
   (3) For a candidate for the State Board of Equalization, one
million dollars ($1,000,000) in the primary election and one million
five hundred thousand dollars ($1,500,000) in the general election.
   (4) For a statewide candidate other than a candidate for Governor
or the State Board of Equalization, four million dollars ($4,000,000)
in the primary election and six million dollars ($6,000,000) in the
general election.
   (5) For a candidate for Governor, six million dollars ($6,000,000)
in the primary election and ten million dollars ($10,000,000) in the
general election.
   (b) For purposes of this section "campaign expenditures" has the
same meaning as "election related activities" as defined in
subparagraph (C) of paragraph (2) of subdivision (b) of Section
82015.
   (c) A campaign expenditure made by a political party on behalf of
a candidate may not be attributed to the limitations on campaign
expenditures set forth in this section.
   85401.  (a) Each candidate for elective state office shall file a
statement of acceptance or rejection of the voluntary expenditure
limits set forth in Section 85400 at the time he or she files the
statement of intention specified in Section 85200.
   (b) Any candidate for elective state office who declined to accept
the voluntary expenditure limits but who nevertheless does not
exceed the limits in the primary, special primary, or special
election, may file a statement of acceptance of the expenditure
limits for a general or special runoff election within 14 days
following the primary, special primary, or special election.
   85402.  (a) Any candidate for elective state office who has filed
a statement accepting the voluntary expenditure limits is not bound
by those limits if an opposing candidate contributes personal funds
to his or her own campaign in excess of the limits set forth in
Section 85400.
   (b) The commission shall require by regulation timely notification
by candidates for elective state office who make personal
contributions to their own campaign.
   85403.  Any candidate who files a statement of acceptance pursuant
to Section 85401 and makes campaign expenditures in excess of the
limits shall be subject to the remedies in Chapter 3 (commencing with
Section 83100) and Chapter 11 (commencing with Section 91000).
  SEC. 61.  Article 5 (commencing with Section 85500) of Chapter 5 of
Title 9 of the Government Code, as added by Proposition 208 at the
November 5, 1996, statewide general election, is repealed.
  SEC. 62.  Article 5 (commencing with Section 85500) is added to
Chapter 5 of Title 9 of the Government Code, to read:

      Article 5.  Independent Expenditures

   85500.  (a) In addition to any other report required by this
title, committees, including political party committees, which are
required to file reports pursuant to Section 84605 and that make
independent expenditures of one thousand dollars ($1,000) or more
during an election cycle in connection with a candidate for elective
state office, shall file online or electronically a report with the
Secretary of State disclosing the making of the independent
expenditure.  Those reports shall disclose the same information
required by subdivision (b) of Section 84204 and shall be filed
within 24 hours of the time the independent expenditure is made.
   (b) An expenditure may not be considered independent, and shall be
treated as a contribution from the person making the expenditure to
the candidate on whose behalf, or for whose benefit, the expenditure
is made, if the expenditure is made under any of the following
circumstances:
   (1) The expenditure is made with the cooperation of, or in
consultation with, any candidate or any authorized committee or agent
of the candidate.
   (2) The expenditure is made in concert with, or at the request or
suggestion of, any candidate or any authorized committee or agent of
the candidate.
   (3) The expenditure is made under any arrangement, coordination,
or direction with respect to the candidate or the candidate's agent
and the person making the expenditure.
   85501.  A controlled committee of a candidate may not make
independent expenditures and may not contribute funds to another
committee for the purpose of making independent expenditures.
  SEC. 63.  Article 6 (commencing with Section 85600) of Chapter 5 of
Title 9 of the Government Code, as added by Proposition 208 at the
November 5, 1996, statewide general election, is repealed.
  SEC. 64.  Article 6 (commencing with Section 85600) is added to
Chapter 5 of Title 9 of the Government Code, to read:

      Article 6.  Ballot Pamphlet

   85600.  The Secretary of State and local election officers shall
designate in the ballot pamphlet those candidates for elective state
office who have voluntarily agreed to expenditure limitations set
forth in Section 85400.
   85601.  A candidate for elective state office who accepts
voluntary expenditure limits may purchase the space to place a
statement in the ballot pamphlet that does not exceed 250 words.  The
statement may not make any reference to any opponent of the
candidate.  The statement shall be submitted in accordance with
timeframes and procedures set forth in the Elections Code for the
preparation of ballot pamphlets.
  SEC. 65.  Article 7 (commencing with Section 85700) of Chapter 5 of
Title 9 of the Government Code, as added by Proposition 208 at the
November 5, 1996, statewide general election, is repealed.
  SEC. 66.  Article 7 (commencing with Section 85700) is added to
Chapter 5 of Title 9 of the Government Code, to read:

      Article 7.  Additional Contribution Requirements

   85700.  A candidate or committee shall return within 60 days any
contribution of one hundred dollars ($100) or more for which the
candidate or committee does not have on file in the records of the
candidate or committee the name, address, occupation, and employer of
the contributor.
   85701.  Any candidate or committee that receives a contribution in
violation of Section 84301 shall pay to the General Fund of the
state the amount of the contribution.
   85702.  An elected state officer or candidate for elected state
office may not accept a contribution from a lobbyist, and a lobbyist
may not make a contribution to an elected state officer or candidate
for elected state office, if that lobbyist is registered to lobby the
governmental agency for which the candidate is seeking election or
the governmental agency of the elected state officer.
   85703.  Nothing in this act shall nullify contribution limitations
or prohibitions of any local jurisdiction that apply to elections
for local elective office, except that these limitations and
prohibitions may not conflict with the provisions of Section 85312.
   85704.  A person may not make any contribution to a committee on
the condition or with the agreement that it will be contributed to
any particular candidate unless the contribution is fully disclosed
pursuant to Section 84302.
  SEC. 67.  Section 89510 of the Government Code is amended to read:

   89510.  (a) A candidate may only accept contributions in
accordance with the provision set forth in Chapter 5 (commencing with
Section 85100).
   (b) All contributions deposited into the campaign account shall be
deemed to be held in trust for purposes set forth in Chapter 5
(commencing with Section 85100).
  SEC. 68.  Section 89519 of the Government Code, as added by Chapter
84 of the Statutes of 1990, is repealed.
  SEC. 69.  Section 89519 of the Government Code, as added by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 70.  Section 89519 is added to the Government Code, to read:
   89519.  (a) Upon leaving any elected office, or at the end of the
postelection reporting period following the defeat of a candidate for
elective office, whichever occurs last, campaign funds raised after
January 1, 1989, under the control of the former candidate or elected
officer shall be considered surplus campaign funds and shall be
disclosed pursuant to Chapter 4 (commencing with Section 84100).
   (b) Surplus campaign funds shall be used only for the following
purposes:
   (1) The payment of outstanding campaign debts or elected officer's
expenses.
   (2) The repayment of contributions.
   (3) Donations to any bona fide charitable, educational, civic,
religious, or similar tax-exempt, nonprofit organization, where no
substantial part of the proceeds will have a material financial
effect on the former candidate or elected officer, any member of his
or her immediate family, or his or her campaign treasurer.
   (4) Contributions to a political party committee, provided the
campaign funds are not used to support or oppose candidates for
elective office.  However, the campaign funds may be used by a
political party committee to conduct partisan voter registration,
partisan get-out-the-vote activities, and slate mailers as that term
is defined in Section 82048.3.
   (5) Contributions to support or oppose any candidate for federal
office, any candidate for elective office in a state other than
California, or any ballot measure.
   (6) The payment for professional services reasonably required by
the committee to assist in the performance of its administrative
functions, including payment for attorney's fees for litigation which
arises directly out of a candidate's or elected officer's
activities, duties, or status as a candidate or elected officer,
including, but not limited to, an action to enjoin defamation,
defense of an action brought of a violation of state or local
campaign, disclosure, or election laws, and an action from an
election contest or recount.
   (c) For purposes of this section, the payment for, or the
reimbursement to the state of, the costs of installing and monitoring
an electronic security system in the home or office, or both, of a
candidate or elected officer who has received threats to his or her
physical safety shall be deemed an outstanding campaign debt or
elected officer's expense, provided that the threats arise from his
or her activities, duties, or status as a candidate or elected
officer and that the threats have been reported to and verified by an
appropriate law enforcement agency.  Verification shall be
determined solely by the law enforcement agency to which the threat
was reported.  The candidate or elected officer shall report any
expenditure of campaign funds made pursuant to this section to the
commission.  The report to the commission shall include the date that
the candidate or elected officer informed the law enforcement agency
of the threat, the name and the telephone number of the law
enforcement agency, and a brief description of the threat.  No more
than five thousand dollars ($5,000) in surplus campaign funds may be
used, cumulatively, by a candidate or elected officer pursuant to
this subdivision.  Payments made pursuant to this subdivision shall
be made during the two years immediately following the date upon
which the campaign funds become surplus campaign funds. The candidate
or elected officer shall reimburse the surplus fund account for the
fair market value of the security system no later than two years
immediately following the date upon which the campaign funds became
surplus campaign funds.  The campaign funds become surplus campaign
funds upon sale of the property on which the system is installed, or
prior to the closing of the surplus campaign fund account, whichever
comes first.  The electronic security system shall be the property of
the campaign committee of the candidate or elected officer.
  SEC. 71.  Section 91000 of the Government Code, added by
Proposition 9 at the June 4, 1974, statewide primary election, is
repealed.
  SEC. 72.  Section 91000 of the Government Code, as amended by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 73.  Section 91000 is added to the Government Code, to read:
   91000.  (a) Any person who knowingly or willfully violates any
provision of this title is guilty of a misdemeanor.
   (b) In addition to other penalties provided by law, a fine of up
to the greater of ten thousand dollars ($10,000) or three times the
amount the person failed to report properly or unlawfully
contributed, expended, gave or received may be imposed upon
conviction for each violation.
   (c) Prosecution for violation of this title must be commenced
within four years after the date on which the violation occurred.
  SEC. 74.  Section 91004 of the Government Code, added by
Proposition 9 at the June 4, 1974, statewide primary election, is
repealed.
  SEC. 75.  Section 91004 of the Government Code, as amended by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 76.  Section 91004 is added to the Government Code, to read:
   91004.  Any person who intentionally or negligently violates any
of the reporting requirements of this title shall be liable in a
civil action brought by the civil prosecutor or by a person residing
within the jurisdiction for an amount not more than the amount or
value not properly reported.
  SEC. 77.  Section 91005.5 of the Government Code, as added by
Chapter 727 of the Statutes of 1982, is repealed.
  SEC. 78.  Section 91005.5 of the Government Code, as amended by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 79.  Section 91005.5 is added to the Government Code, to read:

   91005.5.  Any person who violates any provision of this title,
except Sections 84305, 84307, and 89001, for which no specific civil
penalty is provided, shall be liable in a civil action brought by the
commission or the district attorney pursuant to subdivision (b) of
Section 91001, or the elected city attorney pursuant to Section
91001.5, for an amount up to five thousand dollars ($5,000) per
violation.
   No civil action alleging a violation of this title may be filed
against a person pursuant to this section if the criminal prosecutor
is maintaining a criminal action against that person pursuant to
Section 91000.
   The provisions of this section shall be applicable only as to
violations occurring after the effective date of this section.
  SEC. 80.  Section 91006 of the Government Code, added by
Proposition 9 at the June 4, 1974, statewide primary election, is
repealed.
  SEC. 81.  Section 91006 of the Government Code, as amended by
Proposition 208 at the November 5, 1996, statewide general election,
is repealed.
  SEC. 82.  Section 91006 is added to the Government Code, to read:
   91006.  If two or more persons are responsible for any violation,
they shall be jointly and severally liable.
  SEC. 83.  This act shall become operative on January 1, 2001.
However, Chapter 5 (commencing with Section 85100) of Title 9 of the
Government Code, except subdivision (a) of Section 85309 of the
Government Code, shall apply to candidates for statewide elective
office beginning on and after November 6, 2002.
  SEC. 84.  The provisions of this act are severable.  If any
provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
  SEC. 85.  (a) A special election is hereby called to be held
throughout the state on November 7, 2000.  The election shall be
consolidated with the statewide general election to be held on that
date.  The consolidated election shall be held and conducted in all
respects as if there were only one election and only one form of
ballot shall be used.
   (b) Notwithstanding Section 9040 of the Elections Code or any
other provision of law, the Secretary of State, pursuant to
subdivision (b) of Section 81012 of the Government Code shall submit
this act for approval to the voters at the November 7, 2000,
statewide general election.
  SEC. 86.  This is an act calling an election pursuant to paragraph
(3) of subdivision (c) of Section 8 of Article IV of the California
Constitution, and shall take effect immediately.
